Water Tariff and Cost Recovery
Water tariff for irrigation fluctuate between the US$40 ha/year for irrigation systems supplied by surface water and 150-200 US$ ha/year for irrigation systems supplied by groundwater. Water tariffs had to cover both the cost of operation, administration and maintenance at the module level and the module’s share of costs at the main canal and water-source level.
Water charges are determined for each perimeter by the respective WUA. The tariff is to be calculated every year by dividing the estimated O&M budget by the amount of water authorized for each module. However, this would imply that water services are charged by volume. In fact, fees are assessed by total area, by irrigated area, by type of crop, and by cultivated area, and only in a few cases by volume. In most irrigation districts, users are required to pay for service in advance. Thus, most of the WUAs receive most of their income at the beginning of the irrigation circle. Even during drought and financial crisis, more than 90% of users paid water charges.
Cost recovery in the IDs contributes for 72% of O&M costs, which is considered low. Between 1998 and 2002, farmers covered more than 90% of the administration and O&M costs in 14 out of 82 IDs. In the other 68 IDs the cost recovery was lower.
Read more about this topic: Irrigation In Mexico
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